Characteristics and Historical Forms of Money

The video discusses the six key characteristics of money: durability, portability, divisibility, acceptability, scarcity, and security. Each characteristic is explained in detail, highlighting its importance in ensuring money functions effectively as a medium of exchange. The video also touches on historical forms of money and why they are not practical today.

Why is durability considered a core characteristic of money?

• Because it should withstand frequent use.

• Because it should be easy to carry.

• Because it should be widely accepted.

• Because it should be easy to divide.

What makes portability an important characteristic of money?

• It should be durable and long-lasting.

• It should be scarce and limited.

• It should be easy to carry and transfer.

• It should be easy to divide into smaller units.

How does divisibility benefit the use of money?

• It makes money scarce.

• It ensures money is durable.

• It allows money to be easily carried.

• It allows transactions to be completed with smaller units.

Why is acceptability crucial for money?

• It makes money scarce.

• It ensures money is widely used for transactions.

• It allows money to be easily divided.

• It ensures money is durable.

What role does scarcity play in the value of money?

• It allows money to be divided into smaller units.

• It ensures money is widely accepted.

• It helps maintain the value of money.

• It makes money easy to carry.

Why is security an essential characteristic of money?

• To ensure money is easy to carry.

• To prevent counterfeiting and duplication.

• To make money widely accepted.

• To allow money to be divided into smaller units.

What were some historical forms of money?

• Coins and banknotes.

• Digital currencies.

• Eggs, cows, and shells.

• Credit and debit cards.

Why are historical forms like eggs and shells not suitable as money today?

• They are not divisible.

• They are not scarce.

• They are not easily portable.

• They are not durable.

What is the significance of the six characteristics of money?

• They make money easy to store.

• They ensure money is valuable and functional.

• They ensure money is colorful.

• They make money easy to produce.

Which characteristic ensures that money can be used without hesitation?

• Security

• Durability

• Divisibility

• Portability